RSA aims for better year after UK woes drag down profits

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RSA insisted it could change course after the FTSE 100's struggling commercial lines business dragged down profits last year.

Bad weather and losses in the UK operations had exposed the business to “more volatility than expected”, sending underlying profits down a fifth to £492m, below the £523m expected by analysts.

Chief executive Stephen Hester said: “The UK commercial lines performance has been disappointing for at least a decade so I’m not sure we’re very proud of that. But I’m not sure the evidence is that it’s getting worse.”

Despite the insurer’s “disappointing” performance, he said RSA expected a “good recovery” in 2019 on the back of a revamp of its commercial underwriting book, rate...